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AT&T Expands DirecTV Now, Offers Free HBO to New Customers

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U.S. telecom behemoth AT&T Inc. (T - Free Report) is planning to win over fans of ‘Game of Thrones’, ‘Veep’ and other HBO shows. The company has chalked out another promotional offer that gives free access to the channel for a year on its over the top (OTT) online streaming service, DirecTV Now.

Early this month, AT&T already gifted a free year of HBO to the early subscribers of its DirecTV Now service. But now, the company is advertising its online streaming service on a much bigger scale. The telecommunication company is offering a free year of HBO to new subscribers to DirecTV Now's ‘Go Big’ or ‘Gotta Have It’ packages within Mar 30. This offer comes on the back of another existing offering of a free Apple Inc. (AAPL - Free Report) TV streaming device (set-top box) for anyone who prepays for three months of service. This offer also ends on Mar 30.

Launched on Nov 28, 2016 with an introductory promotional offer of 100 channels for $35 per month, AT&T’s DirecTV Now has been performing quite well. The OTT service helped the company gain a total of 25,265,000 video connections as of Dec 31, 2016. Moreover, total revenue at the Entertainment Group Segment grossed $13,206 million, up 1.6% year over year (post the DIRECTV acquisition).

Meanwhile, AT&T recently gained approval from the European Commission, an institution of the European Union (EU), for its proposed $85.4 billion acquisition of HBO’s corporate parent and the media giant Time Warner Inc. . However, the deal awaits further clearance from the U.S. Department of Justice (DOJ).

AT&T is also trying to resolve its DirecTV’s deceptive advertising lawsuit filed by the Federal Trade Commission (FTC) in Mar 2015. AT&T’s DirecTV was accused of misleading its customers through false marketing campaigns and not disclosing all its terms, which violated one of the FTC’s Acts.

We hope AT&T will easily recover from its DirecTV trial as it is anticipating the integration of the satellite operator’s core operations to drive new products like DirecTV Now. Moreover, recently, both AT&T and the Communications Workers of America (CWA) approved a labor agreement related to 280 CWA-represented former DirecTV employees in Delaware, Maryland, New Mexico and Oregon.

Over the past three months, AT&T contracted 0.70%, while the Zacks-categorized Wireless National industry declined 1.78%.

AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Promotions

U.S. national wireless carrier, Sprint Corp. (S - Free Report) has promoted its unlimited plans by offering DISH Network Corp.’s Internet TV service–Sling TV –free of cost if customers add four or more lines on the Unlimited Freedom plan by the former. This offer is currently available to new and existing Sprint customers in Atlanta and Chicago.

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